Oxy reports estimated greenhouse gas (GHG) emissions from our oil and gas, chemical and midstream and marketing operations based on the Greenhouse Gas Protocol developed by the World Business Council for Sustainable Development and the World Resources Institute, supplemented by more detailed, business specific protocols. We have reported on GHG emissions to the Carbon Disclosure Project since its inception in 2003. CO₂ is the predominant component of Oxy’s GHG emissions, while the remainder is primarily methane. Emissions of other GHGs are insignificant. For reporting purposes, we convert GHG compounds to CO₂ equivalents based on their reported global warming potential.

We estimate that Oxy’s direct emissions — the company’s share of emissions from facilities we operated in 2010 — totaled approximately 11.2 million metric tons¹ of CO₂ equivalents. Our share of indirect emissions (those associated with electricity purchased from off-site suppliers) for facilities we operated in 2010 is estimated at 6.6 million metric tons of CO₂ equivalents.

Compared to 2009 values, Oxy’s estimated direct 2010 GHG emissions reflect an increase of less than 9 percent, due primarily to increased power generation at a natural gas-fired cogeneration facility operated by OxyChem and expanded oil and gas operations in the U.S. and the Middle East. Oxy does not own or operate any coal-fired power generation. Oxy’s estimated 2010 indirect emissions increased by less than 5 percent compared to 2009 due to generally higher electricity consumption at OxyChem facilities and in U.S. oil and gas operations. The net result was a 7-percent increase in 2010 total equity emissions compared to 2009. Reflecting efforts to manage energy and control emissions, it is noteworthy that Oxy grew its oil and gas production by 5 percent in 2010 while achieving a 2-percent reduction in GHG emissions per BOE produced. 

In 2009, U.S. EPA adopted regulations requiring GHG reporting for certain direct GHG emissions source categories and certain GHG supplier categories, subject to applicability thresholds. Oxy provided GHG emissions data for 2010 that included information from our oil and gas operations, chemical facilities, natural gas-fired cogeneration facilities and power plants, natural gas and natural gas liquids facilities and carbon dioxide (CO₂) production facilities. The first reports for Oxy facilities were submitted in September 2011. The data are available on the EPA website. EPA has expanded the coverage of the regulation to require reporting of additional source categories in 2012.